A Comparative Analysis of Sme and Main Board Ipos: Examining Determinants of Oversubscription, Grey Market Premiums (Gmp), and Post-Listing Performance

This report investigates the key factors affecting the performance of Initial Public Offerings (IPOs) in India from 2022 to early 2024. The study aims to assess the impact of Oversubscription Rates, Grey Market Premiums (GMP), and financial performance indicators such as Revenue Growth and Profitability on both immediate listing day gains and longer-term post-listing outcomes across SME and Main Board IPOs.
A quantitative research methodology was employed, analyzing a sample of 30 IPOs from both segments. Data on oversubscription rates, GMP values (one day prior to listing), listing day gains, and post-listing financial metrics were gathered and analyzed using descriptive statistics, correlation analysis, and regression modeling. The analysis revealed that SME IPOs tend to have significantly higher and more volatile oversubscription rates than Main Board IPOs, largely due to speculative interest from retail investors. A strong positive correlation was observed between oversubscription rates and GMP for both IPO types, with a more pronounced alignment in Main Board IPOs, reflecting institutional confidence in established companies.